TVS 2024 calculation: how do you calculate tax on a vehicle?

How do I calculate my company car tax ( TVS ) for 2024 ?

TVS is payable by all profit-making companies that own or use vehicles. However, there are exceptions.

Under what conditions can you be exempt from VAT?

And what are the overall terms and conditions to be aware of, and the calculation scales to be applied?

Let's take a look at this tax return.

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Do you have to pay company car tax?

Companies and vehicles liable for tax

Your company is liable to pay TVS:

• if your registered office is located in France. However, it does not matter where the car is registered;
• if you own or use (hire, loan, etc.) vehicles to transport people. This applies not only to vehicles owned by the company, but also to those belonging to its directors or employees;
• regardless of their legal form or method of taxation.

This tax also applies to certain specific types of vehicle:

• private cars (marked "PC" on the registration document),
• vehicles used to transport people, their luggage or goods, classified in category N1. In other words, these are vehicles marked "van" or "CTTE" on their registration papers, but with several rows of seats.

As a result , motorbikes and scooters are not subject to VAT.

Exemptions

In certain cases, companies are exempt from paying TVS.

Which vehicles can be used to avoid paying TVS:

• vehicles intended :
  • for sale (cars offered for sale, demonstration or test cars, etc.),
  • for hire if they are used exclusively for this purpose,
  • public transport (taxis, VTCs, tourist vehicles, etc.),
  • driving lessons at driving schools,
  • sportsinstruction and competitions (excluding sports driving lessons on circuits),
  • agricultural activities,
  • the operation of ski lifts in ski areas,
• vehicles hired for short periods (less than 30 consecutive days),
• wheelchair-accessible vehicles in category N1,
• electric vehicles emitting less than 60g of _CO2 per kilometre,
• hybrid vehicles combining petrol and gas and emitting less than 61g of _CO2 per kilometre.

☝️ There are also specific exemptions based on _CO2 emissions or tax rating. We'll come back to these in more detail below.

Calculating TVS: how do I go about it?

What you need to know before calculating

• The tax period runs from 1 January to 31 December.
  
• Vehicle tax is calculated by calendar quarter. For example, if you used a vehicle from January to March, you pay one quarter. If you used it until April, you pay two quarters, as any quarter started is due. Finally, the rate to be applied for each quarter is equal to 1/4 of the annual rate.
  
• There are a number of factors to consider when making your calculation:
  • the number of vehicles owned or leased for more than 30 days during a quarter,
  • _CO2 emissions or tax power,
  • the type of fuel.

Finally, the amount payable to the tax authorities depends on two components, each with its own scale. The sums must therefore be added together to arrive at the amount of company car tax.

First component: what is the 2024 calculation scale?

The first component relates either to CO2 emissions or to fiscal power.

There are three categories of vehicle for this first calculation:

• vehicles for which the applicable rate relates to _CO2 emissions, broken down as follows:
  • category 1: vehicles covered by the new registration system (first registration from March 2020) ;
  • category 2: vehicles in circulation since 1 June 2004 and used or owned by the company since 1 January 2006;
• category 3: vehicles that do not fall into the above two categories, and for which the applicable rate is therefore based on fiscal power.

The 2024 TVS scale for the first and second categories :

The scale for the third category :

☝️ There are temporary or permanent exemptions from this first component.

They apply to vehicles powered by the following energy sources:

• a combination of electric power and petrol or E85 superethanol,
• a combination of petrol and liquefied petroleum gas or natural gas fuel.

This exemption is temporary (12 quarters) for :

• vehicles covered by the new registration scheme, and whose _CO2 emissions are less than or equal to 120 g/km ;
• for other vehicles whose _CO2 emissions are less than or equal to 100 g/km.

This exemption is definitive for :

• vehicles covered by the new registration system, with _CO2 emissions of 50 g/km or less;
• other vehicles with _CO2 emissions of 60g/km or less.

Second component: what is the 2024 calculation scale?

Another scale is used to calculate the TVS, and this relates to the type of fuel and the year in which the vehicle was put into circulation:

Reimbursement of mileage expenses

When company directors or employees are reimbursed for mileage expenses, a weighting coefficient is applied according to the number of kilometres reimbursed:

☝️ Good to know: companies benefit from a €15,000 allowance on all vehicles used.

Help with calculating TVS

Does all this sound complicated?

Don't panic, there are online tools to help you calculate your company car tax.

💡 For example, you can use the one provided by the PREVI'START website.

Declaring TVS to the tax authorities

You must declare your TVS before 15 January.

To do this, simply use the forms available on the Service-Public.fr website:

• If you are subject to the standard actual VAT system
• If you are subject to a simplified tax regime
• If you are not liable for VAT

☝️ However, you are exempt from making this declaration in certain cases:

• when the amount of mileage expenses reimbursed by the company is less than or equal to €15,000,
• when the company is not liable for any tax after the €15,000 allowance.

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Towards a reduction in the calculation of TVS in 2024?

You now know everything there is to know about calculating company car tax.

But don't forget to keep an eye on the news, because changes are on the horizon. The Finance Bill for 2022 includes a number of new features, in particular changes to the TVS scales.

As a result, the calculation will be simplified and, in some cases, the tax will be more advantageous depending on the level of _CO2 emitted by the vehicles, particularly those registered to the WLTP standard (Worldwide Harmonized Light Vehicles Test Procedures).